US Economic Growth Revised Up to 3.1% in Q-2, Stocks Close at Record Highs
$DIA, $SPY, $QQQ, $VXX
Wall Street edged higher Thursday, as the S&P 500 marked a record high, while investors show confidence that President Donald Trump will make progress on his tax reform plan.
US Treasury Secretary Steven Mnuchin said President Trump’s proposal for a cut in the corporate income tax rate to 20% is “not negotiable.”
The US GDP grew at an upgraded annual rate of 3.1% in Q-2, the fastest pace in more than 2 years. But growth will like slow this Quarter in the wake of the devastating September hurricanes.
When President Donald Trump predicted that his policies would spur growth of 3% or more, many economists did not take him seriously.
“If we achieve sustained 3% growth, that means 12-M new jobs and $10-T of new economic activity. That’s some number,” President Trump said during a speech in Missouri in late August promoting tax reform. “I happen to be one that thinks we can go much higher than 3%. There is no reason we shouldn’t.”
The April-June expansion in the GDP (gross domestic product) the economy’s total output of goods and services up from the 3% estimate made a month ago, the US Commerce Department reported Thursday. It is the strongest performance since the economy grew at a 3.2% pace in Q-1 of Y 2015.
The year started with a lackluster 1.2% gainer in Q-1.
The revised figure was the government’s 3rd and final look at GDP for the April-June period, and left GDP rising at an average 2% pace over 1-H of this year. That matches the laverage annual growth rates seen since the recovery from the Great Recession began in mid-2009
Thursday, the major US stock market indexes finished at: DJIA +40.49 at 22381.20, NAS Comp +0.19 at 6453.45, S&P 500 +3.02 at 2510.06
Volume: Trade on the NYSE came in moderate at: 767.1-M/shares exchanged.
- NAS Comp +19.9% YTD
- DJIA +13.3% YTD
- S&P 500 +12.1% YTD
- Russell 2000 +9.7% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Very Bullish (0.56)||Very Bullish (0.71)||Very Bullish (0.60)||Bullish (0.38)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Bullish (0.36)||Bullish (0.28)||Bullish (0.46)||Bullish (0.33)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Bullish (0.32)||Neutral (0.16)||Neutral (0.21)||Very Bullish (0.58)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Very Bearish (-0.55)||Very Bearish (-0.63)||Bearish (-0.35)||Very Bearish (-0.67)|